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PayPal has agreed to waive $30 million in processing fees in order to resolve a federal investigation into an investment program that sought to boost Black and minority-owned businesses, the Justice Department announced Tuesday.<\/p>\n
The probe is just one of a number launched under the Trump Justice Department scrutinizing companies that launched diversity, equity and inclusion (DEI) initiatives that Republicans have cast as unlawful and discriminatory.<\/p>\n
DOJ had been probing whether PayPal’s program, which was launched in 2020 following the killing of George Floyd amid social unrest around the country, violated a federal law prohibiting creditors from discriminating against applicants based on race.<\/p>\n
In order to avoid further investigation, the company has agreed to waive processing fees for roughly $1 billion in transactions \u2014 estimated at $30 million — “for eligible American small businesses that are veteran-owned or engaged in farming, manufacturing, or technology.”<\/p>\n
The announcement by DOJ does not explain why PayPal’s transaction fee waivers will be directed to those specific classes of small businesses.<\/p>\n
It has also agreed to launch a new small business initiative that does not account for “the race or national origin of the business owners.”<\/p>\n
\u201cThis Department of Justice is delivering on President Trump\u2019s vow to root out illegal DEI from every corner of corporate America,\u201d Acting Attorney General Todd Blanche said in a statement announcing the settlement. \u201cAmerican corporations are on notice: you will face our aggressive enforcement if you use race or national origin to discriminate against qualified Americans.\u201d<\/p>\n
The settlement does not include any admission of wrongdoing by PayPal, and under the agreement, the DOJ acknowledges it “has not made any determinations or findings\u00a0regarding\u00a0PayPal violating [the Equal Credit Opportunity Act] or any other federal law related to the economic opportunity fund.”\u00a0<\/p>\n
\u201cFor more than two decades, PayPal has helped small businesses start, scale, and thrive by expanding access to digital financial tools,” a PayPal spokesperson said in a statement to ABC News. “We\u2019re excited to launch the Small Business Initiative to infuse American small businesses with even more economic opportunity.\u201d<\/p>\n<\/div>\n